Benchmark Downgrades Valero Energy (VLO) to Hold; Weaker Earnings Outlook

Benchmark downgraded Valero Energy (NYSE: VLO) from Buy to Hold with a price target of $23.00.

Benchmark analyst says, "Shares downgraded to HOLD on less favorable mid-cycle earnings assessment which suggests a fair value roughly equal to the current share price...Fourth quarter earnings expected to be significantly below current consensus estimates...Weaker 2012 and mid-cycle earnings outlook reflects our expectation of narrower heavy crude price discounts....Downside risk in shares is limited by anticipated 2012 share buybacks and more favorable economics on recently acquired Pembroke and Meraux refineries."

For an analyst ratings summary and ratings history on Valero Energy click here. For more ratings news on Valero Energy click here.

Shares of Valero Energy closed at $22.56 yesterday.

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